Moody’s Corporation’s launched the Moody’s Analytics EDF-X Private Credit Model to measure credit risk for the private credit market using performance data supplied by Allvue Systems.
The model evaluates private credit performance by tracking indicators of borrower stress such as covenant waivers and payment-in-kind arrangements.
Moody’s Analytics Chief Executive Christina Kosmowski said: “By combining Allvue’s private market data with Moody’s credit intelligence, we can help customers identify borrower stress earlier and bring greater transparency and insight to a rapidly growing market.”
The tool estimates the likelihood of both missed payments and early indicators of financial distress. The software relies on anonymised performance data from Allvue Systems, LLC and joins an existing suite of private credit products, including the EDF-X CreditGradient tool.
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